Sri Lanka: Dry Zone Urban Water and Sanitation Project

Sovereign Project | 37381-013 Status: Active

Summary

L2477

The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.

L2977

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Dry Zone Urban Water and Sanitation Project
Project Number 37381-013
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0129-SRI: Dry Zone Urban Water and Sanitation Project
Asian Development Fund US$ 23.22 million
Grant 0130-SRI: Dry Zone Urban Water and Sanitation Project
ATF - Netherlands TA Grant US$ 2.00 million
Loan 2477-SRI: Dry Zone Urban Water and Sanitation Project
Asian Development Fund US$ 59.78 million
Loan 2977-SRI: Dry Zone Urban Water and Sanitation Project - Additional Financing
Asian Development Fund US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Urban sanitation - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Some gender elements
Description

L2477

The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.

L2977

The proposed project (the Project) to be funded through additional financing of $40 million from ADB s special fund resources will not change the scope of the original project. The Project will supplement funding of the original project to meet cost overruns to ensure that safe drinking water and sanitation services are provided to the four urban areas of Chilaw, Mannar, Puttalam, and Vavuniya and to achieve the full impact envisaged under the original project. The reasons for the cost overruns are (i) original estimates were based on feasibility studies in 2007 and not on detailed designs, (ii) increase in cost 2008 estimates caused by price escalations between 2009 and 2011 , (iii) increase in distribution pipe diameters to cater for future population growth, and (iv) enhanced water treatment improvements for rehabilitation works at the Chilaw and Puttalam water treatment plants. There will be no changes to the sanitation infrastructure and existing arrangements under the original loan will be followed. The closing date of the Project is December 2016, which will be synchronized with the original project after extension of closing date of the original loan .

Project Rationale and Linkage to Country/Regional Strategy

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Sri Lanka's northern dry zone receives little rainfall, mostly within the short winter monsoon. Residents of the region experience income and nonincome poverty. For decades, major towns have accommodated those displaced by the civil war. Water is therefore essential to improve the lives of residents of this region and those affected by years of conflict.

Water schemes in major towns have been stretched beyond their design life and have substantial inefficiencies; coverage is limited to a reduced number of beneficiaries; and standards are often not met, which could impact the health of those served. Where piped drinking water is not available, water is extracted from other sources; however quality is often poor and seldom verified. In addition to limited access, water supplies are usually insufficient, particularly at the end of the dry season. Demand and willingness to pay for water and sanitation are nonetheless high, particularly in Mannar, and Puttalam and Vavuniya. As water supply augmentation is considered in emerging regional centers, wastewater and septage management must be addressed as an integral part of the solution.

The problem analysis reveals that (i) access to basic facilities and services, including water supply and sanitation, is restricted; and existing infrastructure is inadequate, insufficient, and/or damaged; (ii) water resource coordination and planning are weak, and essential policies for water resource management are lacking;

(iii) operation and maintenance of existing assets is suboptimal; and (iv) institutional capacity is poor, and awareness among users and beneficiaries is inadequate.

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Without additional financing, the original project scope cannot be completed due to cost

overruns. Additional financing is being requested at this stage to ensure that all major civil works contracts can be awarded to complete the original project. Any delay in award of these contracts will result in significant delay of project completion.

Impact

Project Outcome

Description of Outcome Improved water supply and sanitation infrastructure and services northwestern dry zone of Sri Lanka. To this end, the Project will (i) improve and expand infrastructure and services, (ii) strengthen institutions for service delivery and water resource management, and (iii) build project management and implementation capacity.
Progress Toward Outcome As of March 2016, at an elapsed loan period of 88%, the physical progress is 75% and the financial progress is 67%. Out of 16 main contracts, 14 contracts are awarded out of which 4 are completed.
Implementation Progress
Description of Project Outputs

1.1 & 1.2 Water resources developed and water supply infrastrcture expanded and rehabilitated

2.2 Water resource management, coordination and planning ability strengthened

2.3 Public awareness increased

3. Project management and implementation capacity built

1.3 Septage management and sanitation improved

2.1 Decentralization of service delivery functions to Regional offices supported

Status of Implementation Progress (Outputs, Activities, and Issues)

Contract Awarded

Contract Awarded

Contract awarded. Construction works is in progress for intake and new earth tank

Contract Awarded

All contracts awarded except rehabilitation of existing water treatment plant contract

All contracts awarded except rehabilitation of existing water treatment plant contract

Contract Awarded

Contract Awarded.

Completed

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

Contract Awarded

Contract Awarded

Contract Awarded

Contract Awarded

On Going

On Going

On Going

On Going

On Going

On Going

On Going

On Going

Geographical Location Northern and North Western Provinces

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project was reclassified from category B to A during the processing of additional financing.
Involuntary Resettlement On 26 August 2011, ADB sent a letter to the Project Director, Dry Zone Water Supply & Sanitation Project to take immediate action to this letter and several community consultation sessions have been conducted with affected farmers and government agencies such as Government Agent, Divisional Secretariat and Agrarian Services to make them aware on the concerned matter. PMU has taken action to invite selected representatives of Farmer Organization to take part in the meetings conducted on the project. Action plan for resettlement was agreed by all stakeholders. This action plan was fully implemented during 2013. As per the action plan 3 new houses for 3 families to be relocated was constructed and handed over to 3 affected families. Lands allocated to all affected families as agreed in the resettlement plan. Lost harvest compensation was paid to all entitled families and payments to the vulnerable families also paid. Construction works commenced in 2013 as the affected families were satisfied with the compensation package offered. Temporary land permits issued and action has been taken to issue permanent land permits to the affected families.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultation was extensive during project preparation. Major workshops were held at the stage of inception, 'lessons learnt' preparation, mid-term and final review. Separate workshops for disclosure and discussion of safeguards documents were conducted in all project towns. In addition, smaller interviews at local level were held with rural communities, urban local bodies, central and provincial governments. NGOs were recruited at the stage of PPTA and were active players in the design of technical options, socio-economic analysis as well as refining the approach to be followed in rural areas. Extensive socio-economic surveys were conducted in rural and urban areas of the districts of Mannar, Vavuniya and Puttlam. Most importantly, extensive consultations were held with farmers and fishermen living in areas adjacent to proposed water sources.
During Project Implementation Participation is a crucial element of the Project particularly in targeting poor and vulnerable households and ensuring Project sustainability. NGOs will be engaged to support the PMU and local governments in mobilizing communities and delivering essential training for CBOs in planning, monitoring, and evaluating sanitation and hygiene improvement. Local authorities will be invited to play an active role in service delivery planning and administration functions and community leaders will be invited to actively participate in the Project's awareness campaign. A participation strategy will be prepared as part of the RRP.

Business Opportunities

Consulting Services

An estimated 871 person-months (86 international, 785 national) of consulting services are needed. Consulting services are

required to (i) facilitate project implementation and management; and (ii) strengthen institutional, administrative, and financial

capacities of the regional offices. NWSDB will recruit two firms, in accordance with ADB's Guidelines on the Use of Consultants

(2007, as amended from time to time). This includes (i) package A, for design and construction supervision support; and

(ii) package B, for institutional development. Package A will include 60 person-months of international expertise and 588 person-months of national. In addition, about 788 person-months of technical and support staff will be provided under package A for 9roject implementation. Package B will include 11 person-months of international expertise and 79 person-months of national; while package C, for water resource management, will include 15

person-months of international expertise and 118 person-months of national. The consulting firms will be engaged using the qualityand cost-based selection method with a standard quality-cost ratio of 80:20.

Procurement

NWSDB's regional offices will carry out most of the procurement; while central and provincial irrigation departments, supported by the project implementation consultants, will take responsibility for procurement activities relating to tank rehabilitation and construction. Procurement of water supply and septage schemes will follow procedures for international and national competitive bidding. Goods and related services, and civil works to be

financed from loan proceeds will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).

Civil works contracts valued over $3.0 million equivalent and equipment contracts valued over $500,000 equivalent will be undertaken through international competitive bidding procedures, while civil works contracts valued at $3.0 million equivalent or less and equipment packages valued at $500,000 equivalent or less will be procured following national competitive bidding procedures acceptable to ADB. Packages valued at $100,000 equivalent or

less will be under shopping procedures.

Responsible Staff

Responsible ADB Officer Kamal Dahanayake
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
National Water Supply and Drainage Board
Mr. K. L.L. Premanath
RURALWATER@LANKA.CCOM.LK
P.O. Box 14, Mount Lavinia, Sri Lanka

Timetable

Concept Clearance 18 Apr 2008
Fact Finding 23 Apr 2008 to 12 May 2008
MRM 09 Jul 2008
Approval 28 Nov 2008
Last Review Mission -
PDS Creation Date 25 Jan 2008
Last PDS Update 15 Mar 2016

Grant 0129-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 23.22 Cumulative Contract Awards
ADB 23.22 28 Nov 2008 19.96 0.00 86%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2008 15.42 0.00 66%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory - - Partly satisfactory - Partly satisfactory

Grant 0130-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.00 Cumulative Contract Awards
ADB 0.00 28 Nov 2008 0.00 1.70 85%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.00 28 Nov 2008 0.00 1.88 94%

Loan 2477-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 88.11 Cumulative Contract Awards
ADB 59.78 28 Nov 2008 50.99 0.00 88%
Counterpart 28.33 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2008 37.03 0.00 64%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - Satisfactory - Satisfactory

Loan 2977-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 13 Feb 2013 08 Oct 2013 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 40.00 18 Dec 2012 25.24 0.00 69%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 19.95 0.00 54%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - Satisfactory - Satisfactory

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Dry Zone Urban Water and Sanitation Project - Per Aru Reservoir and Surface Water Intake: Environmental Management and Monitoring Report (July-December 2015) Environmental Monitoring Reports Mar 2016
Dry Zone Urban Water and Sanitation Project - Chillaw and Puttalam Districts: Environmental Management and Monitoring Report (July-December 2015) Environmental Monitoring Reports Mar 2016
Dry Zone Urban Water and Sanitation Project - Mannar and Vavuniya Districts: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Mar 2016
Dry Zone Urban Water and Sanitation Project - Chillaw and Puttalam Districts: Environmental Management and Monitoring Report (January-June 2015) Environmental Monitoring Reports Mar 2016
Dry Zone Urban Water and Sanitation Project: Mannar and Vavuniya Districts (July-December 2015) Environmental Monitoring Reports Dec 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (June-September 2015) Social Monitoring Reports Sep 2015
Dry Zone Urban Water and Sanitation Project: Environmental Management and Monitoring Report (January-December 2014) Environmental Monitoring Reports Aug 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (April-July 2015) Social Monitoring Reports Jul 2015
Dry Zone Urban Water and Sanitation Project: Per Aru Reservoir and Surface Water Intake (January-June 2015) Environmental Monitoring Reports Jun 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (March-May 2015) Social Monitoring Reports May 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (November 2014-March 2015) Social Monitoring Reports Mar 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (May 2014-February 2015) Social Monitoring Reports Feb 2015
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (May-October 2014) Social Monitoring Reports Oct 2014
Dry Zone Urban Water and Sanitation Project - Vavuniya District: Involuntary Resettlement Monitoring Report (June 2014) Social Monitoring Reports Jun 2014
Dry Zone Urban Water and Sanitation Project Environmental Impact Assessments Nov 2012
Dry Zone Urban Water and Sanitation Project - for Mannar Water Supply Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Vavuniya Water Distribution and Septage Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Chilaw Water Treatment System Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Puttalam Water Treatment System Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project: Vavuniya Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project - for Mannar Septage Treatment Plant Initial Environmental Examination Sep 2012
Dry Zone Urban Water and Sanitation Project: Chilaw Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project - for Chilaw Septage Treatment Plant Initial Environmental Examination Sep 2012
Dry Zone Urban Water and Sanitation Project: Mannar Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project: Puttalam Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water Supply and Sanitation Project: Proposed Surface Water Extraction from a Reservoir Across Per Aru, Vavuniya District Environmental Impact Assessments May 2012

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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